The election of Donald Trump opens a new chapter in the history of cryptocurrencies. By appointing one of his supporters to head the American financial policeman, the SEC, he is engaging in a fierce fight with the European Union. The objective? “Become the crypto capital of the planet. » For its part, the Old Continent is arming itself with MiCA (Markets in Crypto-Assets) regulations to control this digital Wild West, protect consumers and its financial markets.
“Congratulations to bitcoin fans! 100,000 dollars! THERE’S NO MATTER! Together, we will make America great again. » On his Truth Social network, on December 5, 2024, Donald Trump claims the success of the bitcoin price thanks to his election. Because the question of cryptocurrencies has irrigated the presidential debate in the United States. The new American president wants to make his country “the cryptographic capital of the planet”. A position towards cryptocurrencies that is the opposite of his own a few years ago. In an interview with Foxnews in 2021, he called bitcoin a “scam.” In politics, the tide is turning.
Read more: Donald Trump, defender of cryptocurrencies in the United States
Donald Trump does not intend to stop there. Following his election in November 2024, he announced the appointment of Paul Atkins as head of the Securities Exchange Commission (SEC), the American stock market policeman. He replaces Gary Gensler, a fierce opponent of cryptocurrencies. Aged 66, Paul Atkins was already commissioner of the SEC from 2002 to 2008 under George W. Bush. Donald Trump also appointed David Sacks, a close friend of Elon Musk, to a new position of advisor on artificial intelligence (AI) and cryptocurrencies. He is known to be a member of the famous “PayPal mafia”.
2024: fine, trial and prison
This political reversal comes after a legal year for cryptocurrencies. The SEC imposed $4.68 billion in fines in 2024, an increase of 3,018% from the previous year.
The creator of FTX, Sam Bankman-Fried, was sentenced in March 2024 to 25 years in prison and a $11 billion fine. He was convicted of fraud, conspiracy and money laundering. Other cryptocurrency scams have been punished by imprisonment and fines, causing insecurity among some savers. A Frenchman, Aurélien Michel, a former Breton footballer notably with En Avant Guingamp, was accused of a large-scale fraud, of more than 2.9 million dollars. The crime? “Criminal association with the aim of committing electronic fraud. »
2025: strengthening regulations in the United States and the European Union
These resounding scandals marked the beginning of a profound transformation. The objective: to restore user confidence and above all to give something to regulators around the world to strengthen the rules. Thus, in Europe, the MiCA (Markets in Crypto-Assets) regulation, applicable since December 30, 2024, imposes more onerous procedures on crypto players: cybersecurity audit, minimum equity, declaration of their environmental footprint, etc. This increase in entry barriers aims to oust companies that do not have the critical size to obtain the necessary approvals.
In the United States, faced with the risks inherent in cryptocurrencies making a legal framework essential, the SEC also wanted to better define the legal classification of these assets. Indeed, depending on the legal qualification used, the regulation is different. If a cryptocurrency is considered a security, it is subject to regulation by the SEC. If it is considered a commodity, it is regulated by the Commodity Futures Trading Commission (CFTC) and if it is treated as a currency or a unit of account, it is subject to regulation close to that governing traditional payments.
-Strategy of the United States vs. that of the European Union
With the appointments of David Sacks and Paul Atkins, the United States advocates legislation focused on the “free market”, in addition to the opening in 2024 of derivative products linked to the price of cryptocurrencies – Bitcoin ETF in January and Ether in July . In the event of a significant reversal of the trend or a crisis linked to the collapse of the price of cryptocurrencies, the United States still has the main reserve currency of central banks what do you mean by that?
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The very high volatility of the cryptocurrency market is proven. The question of the contagion of this volatility to the financial markets is then relevant. Indeed, increased integration of cryptocurrencies into American financial systems could increase the volatility of financial markets and transmit to European markets. Two dangers of this interdependence: if European investors are heavily exposed to crypto assets or if European financial institutions are connected to US markets through investments or partnerships, the markets can collapse.
Read more: Bitcoin and cryptocurrencies in 2025: opportunities or dangers?
Faced with these risks, the European Union is choosing to preserve the sovereignty of States over currency with the MiCA regulation and the possible establishment of a digital Euro. It has chosen to strengthen government control over capital flows, tax collection, the fight against money laundering and consumer protection. As a corollary, it arbitrates (voluntarily?) to benefit from growth opportunities linked to the development of the fintech sector, blockchain and the digital economy.
Innovation in the face of regulation
As of now, certain players in the cryptocurrency ecosystem, notably stablecoins, are refusing to comply with the new rules for obtaining MiCA approval. Among these, some have significant weight such as Tether which, with a capitalization of more than 130 billion dollars, represents the third largest capitalization behind bitcoin and ethereum. Likewise, faced with a more permissive American policy, certain European companies could favor the American market, delaying or complicating the application of MiCA in Europe.
This could reduce liquidity in European markets and weaken the European Union’s position as a financial center. Ultimately, the United States’ pro-cryptocurrency policy should stimulate innovation in financial products. So, in order not to lose market share, will European institutions be ready to innovate by allowing the development of new trading platforms, financial services based on blockchain, and the wider adoption of decentralized technologies?
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